The New York Times reports that "Defense Secretary Chuck Hagel offered on Wednesday his most thorough assessment of financial challenges facing the military, warning that if punitive, across-the-board budget cuts are not lifted, the nation must reduce its global security objectives by trading away either the size of its force or its technological edge as the Pentagon seeks to remain solvent."

"The political stalemate between the White House and Congress over a comprehensive deal for taxes and spending required the Defense Department to plan for a range of budget situations, including a partial lifting of the broad cuts, although any deal remains elusive."

"Under the most dire situation of budget cuts, Mr. Hagel described a required trade-off between size — measured in the number of Army brigades, Navy warships, Air Force fighter squadrons and Marine expeditionary units — and the ability to overmatch any adversary with training, skill and higher-quality weapons."